Afren Updates on Iraqi Operations

Shares in Afren were trading up more than 3 percent on Thursday afternoon following the release of the company’s Interim Management Statement, which included the following update on its Iraqi operations:

Barda Rash

On 8 July 2013 Afren commenced preliminary crude oil sales from the Barda Rash PSC to the local market. Gross average production has been ramped up from the initial 1,300 bopd to approximately 2,000 bopd currently.

The Partners commenced drilling on the BR-5 well in Q1 2013 using the Romfor-23 drilling rig which is currently drilling ahead at around 11,266 ft. The Partners also commenced drilling the BR-4 in May using the Viking I-10 rig, which is currently drilling ahead at around 10,853 ft. The wells are testing the Cretaceous, Jurassic and Triassic reservoirs previously identified on the structure.

Ain Sifni

During the first half of 2013, Operator Hunt Oil completed testing of the Simrit-2 well with aggregate flow rates of 19,641 bopd achieved from the planned Drill Stem Test (DST) programme. The Mus/Adaiyah reservoirs are currently being produced as part of an Extended Well Test (EWT) programme to better understand reservoir performance. Produced crude is being trucked to local markets.

The Simrit-3 well, exploring the eastern extent of the large scale Simrit anticline reached a final maximum depth of 12,300 ft in the Triassic Kurra-Chine formation in 1H 2013 encountering hydrocarbon bearing intervals in the Cretaceous, Jurassic and Triassic reservoirs. A multi-zone testing programme has been completed and the well has been configured as a produced water disposal well.